EXCLUSIVE A federal tax designed to share profits from the oil and gas sector with the Australian public is barely raising a single extra dollar despite the industry’s transformation from a $5 billion concern a decade ago to a $60 billion export powerhouse. With Australia poised to become the world’s… – Continue reading
Some people think popular furniture store IKEA is being naughty, and not paying its proper share of tax in Australia. The franchise is a behemoth, both literally in terms of store size and figuratively in that it collected a US$5 billion profit for the 2014 financial year. A community action… – Continue reading
President Park Geun-hye called Monday for a careful adjustment of monetary policies of advanced countries amid lingering worries over a potential Fed rate hike. Last month, the U.S. Federal Reserve kept interest rates at near zero due to global headwinds but suggested that it could raise rates by the end… – Continue reading
The UK Government launched a consultation on 22 October 2015 regarding the UK corporate tax rules for interest deductibility. The consultation seeks views on the design of a general limitation for UK corporation tax deductions for interest and similar finance costs, imposing a capcalculated by reference to a fixed percentage… – Continue reading
Good and Services Tax to apply to online services and digital goods delivered from offshore from October 2016. New Zealand is powering ahead with a plan to tax digital goods and online services delivered from offshore providers such as Netflix. Introducing a Bill into Parliament today, revenue minister Todd McClay… – Continue reading
Currently 15,980 foreign companies are operating in Korea. While hiring workers and producing goods and services, foreign investors encounter numerous difficulties and experience a variety of grievances. One particular grievance brought to our attention is that they suffer from a discrepancy between the value of imported goods assessed by the… – Continue reading
MELAKA: Some 180 participants from 47 countries will attend the five-day 36th annual Technical Conference of the Commonwealth Association of Tax Administrators (CATA) here from tomorrow. The Inland Revenue Board (IRB) said among the countries taking part in the conference are Australia, South Africa, Brunei, India, New Zealand, Canada, Pakistan,… – Continue reading
In the first step towards boosting trade and investment between the two nations, Australia and Germany have signed a new tax treaty in Berlin. It also marks an attempt to improve the integrity of the tax system by pinning down on multinational tax evasion. The deal, which preceded the arrival… – Continue reading
ANZ Banking Group has paid an instalment on its 2016 financial year company tax in order to get enough credits to maintain a fully franked final dividend in 2015, raising the spectre of future ANZ dividends being only partially franked or the dividend payout ratio falling to reflect the growing… – Continue reading
Tax: Luxembourg among countries helping US firms cut their tax bills by more than a quarter, campaigners say. The abuse of holding company structures in the Grand Duchy, and fiscal regimes in several other countries, allows American firms to avoid paying billions of dollars in corporate profit taxes, two NGOs… – Continue reading
Treasurer rejects amendments to restore tax transparency measures dumped last month, jepoardising a planned crackdown on multinationals A standoff between the two houses of parliament threatens to thwart a government-backed crackdown on multinational tax avoidance and a Labor-backed plan to increase tax transparency. The treasurer, Scott Morrison, told the House… – Continue reading
On September 16, 2015, the Australian government introduced into Parliament Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill 2015, which contains, among other items (including the implementation of country-by-country reporting), the proposed legislative language to implement Australia’s version of the United Kingdom’s diverted profits tax. The bill was accompanied by… – Continue reading
The Coalition’s decision to vote down its own measures to crack down on multinational tax avoidance is just the latest instalment in an increasingly unfocused taxation debate Well that’s a courageous decision – in the Sir Humphrey Appleby sense of the phrase. Just as it is encouraging a “debate” about… – Continue reading
Australian motor racing legend Alan Jones has become embroiled in the collapse of an online gambling company operated by notorious conman Peter Foster which owes $11.5 million to about 150 investors. The 69-year-old former winner of the Formula One Drivers’ Championship was named in a writ to be lodged in… – Continue reading
‘Special purpose’ approach by accountants hides corporate secrets Amid the maelstrom over the GST, the Senate last night passed what may be the most useful piece of legislation yet to combat multinational tax avoidance. The new law was not carried by the government, whose track record on tackling big tax… – Continue reading
The New Zealand foreign trust regime – its use in international wealth planning The New Zealand “foreign trust” regime came into being over 25 years ago. It arose from a domestic initiative to make the use of offshore trusts for tax minimisation more difficult for New Zealand residents, by imposing… – Continue reading
Exclusive PM underlines fairness test for GST ‘The fact of the matter is that any changes to the tax system will be fair’ says Prime Minister Malcolm Turnbull in question time on Monday. Australia’s peak union body is preparing for a major political fight with the Turnbull government over tax… – Continue reading
Key Points: The rejection of the Commissioner’s position on the relevance of credit rating agencies and the relevance of implicit support will give rise to uncertainty going forward, as it is unclear how an arm’s length interest rate can be practically determined. The Federal Court’s recent decision in Chevron Australia… – Continue reading
Headline: G20 among biggest losers in large-scale tax abuse – but poor countries relatively hardest hit G20 countries are the biggest losers when US multinationals avoid paying taxes where they do business. This is the main finding of a new report on the global tax system, ‘Still Broken,’ released by… – Continue reading
United States corporations avoid an estimated $US1.45 billion ($2.06b) of tax in Australia each year by shifting their profits to low or no tax countries, research shows. A joint report by advocacy and union groups Tax Justice Network, Oxfam, Global Alliance for Tax Justice and Public Services International says in… – Continue reading
At a very high level, it’s a simple concept: a multinational borrows money from a related company overseas, and then uses the interest bill and the repayment methods to reduce tax exposure in Australia. If the loans – and the interest rates – are big enough, the tax savings can… – Continue reading
A planned crackdown on multinational tax dodgers could be in limbo after Labor backed changes to force large companies to submit yearly financial statements. The opposition and the Greens joined forces on Tuesday to back amendments by independent senator Nick Xenophon that would force the bill back to the House… – Continue reading
A Senate inquiry committee has endorsed government measures to crack down on multinational tax avoidance. A Senate committee has recommended the government review proposed multinational tax avoidance measures within three years to ensure they stop companies siphoning profits offshore. An inquiry into a government bill to crack down on companies… – Continue reading
An American expatriate says a taxation issue in his homeland is having adverse effects on millions like him who simply want to work, save, and live their lives without being hammered by the government. OneNewsNow reported earlier that the tax burden in the U.S. has become so great that many… – Continue reading
Clubs Australia and the American Gaming Association (AGA) to Join Forces to Table Illegal Online Gambling Trade Association Clubs Australia made recent headlines releasing a statement that confirms its partnership with the American Gaming Association to tackle an ongoing problem that has created an analogous situation with the ‘Wild West’…. – Continue reading
Exclusive More than 100 victims of notorious conman Peter Foster have moved to freeze funds held in offshore tax havens after more than $10 million was siphoned from his online gambling company Sports Trading Club. Fairfax Media can reveal Foster and at least eight associates have been served with freezing… – Continue reading
On September 7, 2015, the local tax court of Cologne (the “Court”) issued an injunction against the German Federal Central Tax Office (“FCTO”) to prevent the FCTO from conducting a coordinated exchange of information with the E6 countries Canada, Great Britain, France, Australia and Japan, which aimed at gathering intelligence… – Continue reading
A question being considered in Australia—concerning country-by-country (CbyC) reporting—is whether an investment entity is to be excluded from the “group” for CbyC reporting purposes. A preliminary position being advanced is when an entity is not required to prepare consolidated financial statements for financial reporting purposes, then it would be excluded… – Continue reading
According to a recent article in the Australian news source Australia’s Clubs Australia is forming an alliance with the American Gaming Association. The common goal of the two organizations is to respond to the number of illegal online gambling web locations which pose the threat of money laundering and possible… – Continue reading
Malcolm Turnbull: Tax reform must be fair Fairness is critical to the success of any tax reform, says Prime Minister Malcolm Turnbull during his first keynote economic address in Melbourne. Courtesy ABC News 24. GST hike to hit poor hard and leave rich unscathed: research Prime Minister Malcolm Turnbull says… – Continue reading
A Sydney accountant has been convicted and sentenced for his role in advising a client on how to hide funds offshore, resulting in the avoidance of $4.5 million in tax. Following a nine-week trial by jury, Raymond Clifford Osborne, 63, was found guilty on two counts of defrauding the Commonwealth… – Continue reading
An Israel delegation is scheduled to visit Australia in June 2016. The Israel Tax Authority is negotiating a treaty for prevention of double taxation with Australia, sources inform “Globes.” Tax Authority head Moshe Asher is currently in advanced talks with Australian Treasurer Joe Hockey, who himself declared that the Australian… – Continue reading
New Zealand still has some work to do to stop the country being used as a safe haven for illicit funds, a new survey shows. The 2015 Financial Secrecy Index has been released, which ranks countries on their ability to promote fiscal transparency. The index is produced by the Tax… – Continue reading
Australia hosts significant quantities of illicit funds from outside the country, according to the 2015 Financial Secrecy Index. The Tax Justice Network’s index, released every two years, rates countries based on financial transparency. The latest index rates Australia 44 out of 100 (from 47 in the previous survey) meaning it… – Continue reading
New Zealand would do worse than Australia if it was audited right now by the body that sets standards for combating money laundering and the financing of terrorism, says the organisation’s former boss. Roger Wilkins, immediate past-president of the Financial Action Task Force (FATF), said criticisms of Australia after an… – Continue reading
Australian taxpayers could get a bill of rights, and better compensation schemes if they have been wronged by the Australian Taxation Office, following a new review by the Inspector-General of Taxation. On Monday, Ali Noroozi launched his review examining whether there’s scope to introduce a taxpayer bill of rights, similar… – Continue reading
The Australian Taxation Office (ATO) 2014 amnesty initiative to disclose your offshore income and assets is winding up. So what if you didn’t apply for amnesty under Project Do It? Is it too late for you? Project Do It On 27 March 2014, the ATO announced the Project Do It… – Continue reading
A spate of so-called “tax inversion” deals involving companies based in Ireland appears to be distorting the country’s foreign direct investment (FDI) numbers, The Irish Times reports. An OECD report suggests investment by Irish firms abroad more than doubled to US$75 billion in the first half of 2015. The study… – Continue reading
Australia’s largest bookmaker, Tabcorp, has called for less gambling advertising, which it argues is harmful to the community, and delivered its annual attack on international betting operators for paying minimal tax. Tabcorp’s business, which includes horse racing, sports wagering, Keno and a substantial media unit, remains the market leader in… – Continue reading
The yuan in Hong Kong rose the most in more than two weeks on speculation China’s central bank intervened to prop up the currency after its discount to the Shanghai spot price widened. Large Chinese banks sold dollars in the offshore market in early Asian trading hours Thursday, according to… – Continue reading
A new report by Allen & Overy has revealed that corporate clients’ tax functions are now more concerned about risk management than tax minimisation. ATO sophistication, combined with heightened media interest, has forced tax directors to focus on compliance instead of dedicating their efforts to achieving the low tax rates… – Continue reading
Australia’s corporate tax rate is higher than the global average, according to KPMG’s 2015 global tax rate survey, SmartCompany reports. While Australia’s corporate tax rate currently sits at 30 per cent, the global average sits at 23.68 per cent. The United States has the highest corporate tax rate at 40… – Continue reading
Global tax experts KPMG expect taxpayers throughout the world will need to pay more tax in the years ahead as governments repay debt and fund increases in social welfare. In its annual global tax rates survey released on Tuesday it says Australia’s tax mix is out of step with global… – Continue reading
The Australian Taxation Office (ATO) recently engaged in the first automatic sharing of financial account information with the tax authority (IRS) in the United States. The details of more than 30,000 Australian financial accounts of individuals with a connection to the United States were provided to the IRS under the… – Continue reading
A decision by the Federal Court of Australia has key implications for transfer pricing of intercompany financing transactions, as well as implication for other broader intercompany arrangements. The case concerns the transfer pricing implications of an intercompany loan agreement between an Australian taxpayer and its U.S. subsidiary (CFC) and whether… – Continue reading
Profit-shifting has not paid off for petroleum multinational Chevron, slugged with a tax bill for $322 million thanks to a Supreme Court decision on Friday. Chevron has been under close scrutiny this year, particularly since a senate inquiry into tax-avoidance in April which also put mining giants BHP, Rio Tinto,… – Continue reading
Leading family offices in Latin America and the Caribbean are going through a transitional period, says Steven Cantor, managing partner of Cantor & Webb, a Miami-based law firm, reports the Financial Times. “As the world moves to tax transparency, with a crackdown on undisclosed tax savings in Swiss bank accounts,… – Continue reading
Multinational oil giant Chevron has been hit with a tax bill of about $300 million after losing a landmark profit-shifting case that could have global implications for the way tax is assessed. The Australian Tax Office’s case in the Federal Court case has been closely watched by the tax and… – Continue reading
Oil and gas giant Chevron faces a massive tax bill after losing a long-running battle with the tax office over allegations the company used internal lending to reduce its Australian taxes. The Federal Court this morning ruled against Chevron in a landmark legal case that had argued the US multinational… – Continue reading
Chevron lost an appeal in Australian federal court that will see the US supermajor pay more than US$232 million (A$322 million) in back taxes, in addition to fines, after losing a case with the Australian Tax Office (ATO). The Aussie federal court ruled against Chevron, stating the company wrongly shifted… – Continue reading
